REACT-EU has been established by the European Union as a recovery assistance plan to mitigate the economic and social consequences of the Covid-19 pandemic in Europe. REACT-EU, which stands for Recovery Assistance for Cohesion and the Territories of Europe, is the second largest funding instrument in the framework of NextGenerationEU.
The European Union is bringing together its measures against the economic and social consequences of the COVID-19 pandemic under the umbrella NextGenerationEU (NGEU). The recovery instrument with a budget of 750 billion euros in 2018 prices is without precedent in the history of the European Union. This amounts to a budget of more than 800 billion euros when you take the development of the respective price level in the coming years into account. The measures receiving funding not only address the immediate consequences of the pandemic, but also look to the future, so that Europe emerges stronger from this crisis ready for future challenges. All total, there are seven individual instruments that make up Next Generation EU. They support the EU’s economy and people through concrete measures that focus on different aspects.
Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) is the second largest Next Generation EU funding instrument with 47.5 billion euros in 2018 prices (50.6 billion in current prices). REACT-EU will provide additional funding to the European Structural and Investment Funds (ESIF) through 2023. The ESIF will thus contribute to addressing the consequences of the COVID-19 pandemic and support the transition to a digital, environmentally sustainable economy and society. Around 2.3 billion euros in current prices are expected to be available to Germany from REACT-EU to support measures under the European Regional Development Fund (ERDF) and the European Social Fund (ESF).
In the field of ESF, REACT-EU is promoting the creation and safeguarding of jobs for both the self-employed and the employed, especially for young people and those in precarious situations. It also promotes investment in education and vocational training.